Ingeteam closes 2018 with a turnover of €637 million

The Ingeteam Group has closed the financial year of 2018 with a turnover of €637 million. This figure represents a 47% increase since the start of the strategic plan in 2016 up to 2018, strengthening its international leadership position in the sectors in which it operates. It should be noted that 82% of Ingeteam’s business is abroad, serving to indicate the high level of internationalization of its products and services.

The solutions offered by the Group apply at electric generation, consumption and transmission in the following sectors: renewable energies (wind energy, solar PV, hydropower), generation plants with gas and diesel engines, e-vehicle charging infrastructures, railway, marine, steelmaking industry, mining and pumping.

The Group has created 865 new jobs and has continued to focus on in-house technology. With this aim in mind, it has invested €84 million in R&D, an activity involving around 400 employees. At the same time, the Group has upgraded and increased its production equipment and Test Benches with an investment of more than €30 million.

The Ingeteam Group is present in Bizkaia (Zamudio), Gipuzkoa (Beasain), where Indar is based, Navarra (Sarriguren and Sesma) and Albacete. It also has a significant international presence, with subsidiaries in 22 countries. The Group has a head count of 3,900 employees throughout the world, of which more than 1,000 are located at its different international subsidiaries.

With regard to the generation of induced activity, Ingeteam has helped to drive the local economy with more than €500 million in the form of orders placed with suppliers, from whom it has ordered a whole range of products and services. This also includes the production of sub-assemblies, designed by Ingeteam and manufactured by third parties to be subsequently integrated in the equipment and systems assembled by the company for delivery to customers.

Regarding investments in facilities over this period, particular mention should be made of the following:

Factory in Ortuella

This year Ingeteam will open a new plant at Ortuella (Bizkaia) directed at the manufacture and testing of frequency converters. This plant, occupying a surface area of 6,500m2, will make it possible to triple the current production capacity of power electronics equipment, used in a variety of sectors such as mining, rail traction, marine, steelmaking and power grids. These electronic devices make it possible to achieve greater efficiency and controllability of the different processes such as the electric traction of a train, the hybrid and/or electric propulsion of a vessel, mineral grinding at a mine, and the production of steel at a steelworks. Furthermore, these devices make it possible to store renewable energy for use by consumers when required, enhancing the quality of the power grid, improving efficiency and availability, (preventing outages) in power grids that are increasingly smarter and more complex.

Factory in India

A new plant has also been put into operation in India for the manufacture of converters for wind turbines and state-of-the-art power and control equipment. This plant currently has a surface area of 5,000 m2 which is now being extended to meet the expected demand. This new plant has been specifically developed to meet the needs of a promising and demanding market. This year has seen the delivery of the first converters manufactured at this plant located in the region of Tamil Nadu, close to Chennai in southern India.

Consolidation of our business in USA and Brazil

After 20 years in Brazil and 9 in the United States, over the course of the last strategic plan, our business has been consolidated in both countries, focusing in both cases on the marketing of solutions primarily directed at the wind generation sector. Specifically, in Brazil the marketing of power converters, based on power electronics, accounted for a sales volume of €73 million during these three years. With regard to the United States, business was focused on the marketing of Indar generators, achieving a sales volume of €156 million over the three year period. The goal of the forthcoming plan is to consolidate business in both geographical markets.

New Strategic Plan 2019-2021

The start of 2019 saw the approval of the new strategic plan to cover the period 2019-2021.

Our Project is based on contributing to the decarbonization of society and to energy transformation towards an increasingly electrified society. The technology underpinning the Project focuses on the three fundamental technological driving forces within the Group: rotating electric machinery, power electronics, and automation and control. Additionally, Ingeteam provides innovative operation and maintenance solutions, which are becoming increasingly important in the renewable energy-related sectors.

In this new plan, the Group is aligning its strategic objectives with those of the Agenda 2030 Sustainable Development Goals, setting triple sustainability (social, economic and environmental) as the strategic goal for the Project.

Ingeteam expects to consolidate its line of growth by achieving sales of €730 million on completion of the strategic plan, which would represent a growth of 15%.

The growth expectations of Ingeteam’s different businesses in the current strategic plan are as follows:

The Ingeteam Group has achieved the position as the world’s leading independent supplier of wind energy converters and generators thanks to its innovative solutions offered to the sector, adding 52 GW of installed power capacity in new plants worldwide throughout 2018.

Starting from the current 45 GW installed with generators and converters made by the Ingeteam Group, equivalent to 8% of the market share, the expectation is to maintain the current leadership level, as a leading supplier for wind turbine manufacturers. With regard to Operation and Maintenance services, at the end of 2018 the Group was maintaining wind farms totaling 8.8 GW of installed power capacity worldwide.

This generation sector is currently experiencing considerable growth worldwide. In 2018, more than 100 GW were added in new solar PV generation plants around the world.

In the course of this new three-year Plan, Ingeteam expects to supply solar PV inverters totaling a greater power capacity than that supplied in all its history in the sector, which dates back to year 2000. At the close of 2018, Ingeteam was providing operation and maintenance services to solar PV plants totaling 6.1 GW of power throughout the world.

The Indar electric generators, used in hydropower plants, account for a worldwide installed power capacity of 8.6 GW. The Group also offers automation and control solutions for Hydropower Plants.

In the future, hydropower will continue to play a key role, not only as a generation technology but also due to its added energy storage capacity (at reversible pumping plants), in which the Group is committed to being a technology leader, enabling other renewables (solar PV and wind energy) to be integrated into the electricity grid.

The Ingeteam Group is contributing with its solutions for distributed generation at back-up thermal plants in isolated places and weak networks, with high-efficiency synchronous generators to be driven by combustion engines (diesel, gas or dual) that can minimize primary fuel consumption, in addition to offering generation control systems for this type of plant.

The Ingeteam Group offers solutions for the protection, control and metering of the distribution and transmission power grid in the face of the growing need to develop the grid in order to meet the increase in demand, enhance the quality of service and improve efficiency. In this sector, the concept of Smart Grids is firmly taking root.

Throughout the 2019-2021 strategic plan, the activity in this sector will continue its sustainable growth in electricity transmission and distribution, growing significantly in the automation of substations at renewable generation plants, given that these are expected to experience the greatest expansion.

The new economic model that is progressively taking hold will permit the exponential growth of e-mobility worldwide. In this respect, parallel growth is foreseen in the Group’s e-vehicle charger business, where more than 4,000 electric chargers have been supplied to date. Ingeteam offers a host of charging solutions, ranging from AC domestic chargers up to DC ultra-rapid charging points, including the whole range of street semi-rapid and rapid charging posts, EV charging stations, shopping centers, companies, etc.

This is a business activity that cuts across the different forms of electricity generation, responding to the need to adapt the generation curve to consumption while helping to stabilize and control the power grid. The mass entry of renewables into the generation mix has served to highlight this need.

In this regard, Ingeteam offers solutions for application in generation systems (PV, wind energy, others) and also in electricity distribution (substations) and consumption (e-mobility and self-consumption), expecting strong growth in the years ahead.

Due to the increasingly pressing need for water for human consumption, together with the upheavals caused by climate change, this business, which is developed by Indar in the Ingeteam Group, is increasingly becoming a growth vector. Under the “Water Engineering” concept, Indar offers solutions that combine the integration and engineering of pumping projects with its submersible motor-pump sets. The expectations for this 2019-2021 Plan is for continued participation in flagship projects with a high technology content.

Activity in this sector dates back to year 2000. Ingeteam offers solutions for all types of trains based on electric or hybrid traction, ranging from metros and trams to high speed, as well as onboard control systems.

Contributing to the decarbonization of society through the electrification of transport, Ingeteam expects to grow sales fourfold in this sector during the 2019-2021 Strategic Plan.

In the marine sector, market trends are pointing to increasingly specialized vessels that are smarter and more environmentally friendly, vessels in which the solutions offered by the Group (motors, generators, converters, automation systems and electric plant engineering) are progressively increasing in demand. As a result, support ships for the construction of offshore wind farms, suction dredgers, cruisers and other types of high-tech specialized vessels (investigation ships, silent ships, etc.) are the key targets of the Group’s activity in this sector.

These are traditional sectors in which the Group’s technical solutions provide controllability, greater efficiency and versatility.

For mining, where there is an increasingly greater awareness of the environmental impact and the ecological footprint, Ingeteam offers solutions that contribute to the reliability, efficiency and control of mine sites.

In the case of the steel industry, there is a trend towards investments in upgrading/revamping existing facilities in order to achieve enhanced performance and efficiency in the production processes. Once again, the Group’s expectations are to continue growing in both sectors with participation in large-scale projects at an international level.